Even as the Sensex and Nifty took a breather on Wednesday morning amid global uncertainties after British lawmakers crushed Prime Minister Theresa May’s EU divorce deal, experts say that Brexit deal or without it unlikely to have any significant impact on the present rally.
Even as the Sensex and Nifty took a breather on Wednesday morning amid global uncertainties after British lawmakers crushed Prime Minister Theresa May’s EU divorce deal on Tuesday, stock market experts say that Brexit deal or without it unlikely to have any significant impact on the present rally. “The present rally is fuelled by liquidity and even discounting this, we have domestic events like General Elections which are likely to be more strongly affecting than the Brexit which is now almost an non-event for us and is overshadowed by domestic event like General Elections,” Milan Vaishnav, Consulting Technical Analyst, Gemstone Equity Research and Advisory Services told Financial Express Online.
According to investment advisor Sandip Sabharwal, the rejection of the Brexit proposal was a given and as such does not change anything. Sharing the way forward, Sandip Sabharwal said, “The two realistic possibilities are– a delay; or a rethink on Brexit. both of these should go down well with the markets.” However, no deal Brexit may be disruptive for the overall sentiment, and is best avoided, he added.
Sharing his outlook on the present stock market rally, Yogesh Nagaonkar, CEO of Rowan Capital Advisors said that he expects the rally to continue further as the pre-poll sentiments are truly polarised.”We don’t expect the rally to die down soon as investors have kindoff prompted the election 2019 outcomes. Also, Britain is not India’s big trading or commercial partner so economically the impact is not there,” he noted.
I do not see any development on the Brexit front (deal, no deal or delay) impacting markets in any way. The Central bank in Europe has already kept interest rates at record lows and indicated in dovish stance of not increasing it anytime in near future, the funds flow to emerging markets are also not likely to get disturbed.”